4 Tips to Make Your Mortgage More Affordable

Most buyers would love to have a more affordable mortgage payment. Cutting costs on your mortgage can translate to getting your mortgage paid off earlier and saving money on interest, resulting in paying less for your mortgage overall.

But when you’re crunching the numbers for your home buying budget and getting pre-approved, it can feel challenging with all the different loan options and tricks. 

With these 4 tips, you can make your mortgage more affordable and save money on your mortgage payment. 

Tip 1 - Look into a 2-1 Buydown: This is a type of financing that lowers the interest rate on a mortgage for the first two years before it rises to the regular permanent rate. 2-1 buydowns are a great option for many buyers as they allow you to save the money that you would be paying on the regular rate mortgage. 

Tip 2 - Try Mortgage Points: These are fees a homebuyer pays directly to a lender in exchange for a reduced interest rate. You’ll pay the lender up front, and your reduced interest rate will save you money in the long run. This is also a common perk that home sellers might offer or something that you can negotiate on in the closing process.

Tip 3 - Refinance Your Loan: A loan refinance replaces your old mortgage with a new mortgage. Your new mortgage will have a different principal amount and interest rate. This results in a lower monthly payment. If you have a high interest rate, a refinance is a super smart way to decrease the amount you pay in interest and save on your mortgage payments. 

Tip 4 -  Consider Bi-Weekly Payment Plan: This tactic adds one extra month’s payment that’s applied to your mortgage principal. This can help shave years off your mortgage since you’ll be paying off the mortgage more quickly. As a result, you’ll save thousands on interest by the end of your loan.

Saving money on your mortgage means you can use that money for other things. These tips will help you save money on your home mortgage so you can save the money for a down payment or use it on something like home renovations! 

Want to talk more about mortgages and how to save?  Reach out via email, text or call!  I am always ready to help!